BROOKFIELD RENEWABLE CORP (BEPC) Stock Fundamental Analysis
NYSE:BEPC - New York Stock Exchange, Inc. - CA11284V1058 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to BEPC. BEPC was compared to 20 industry peers in the Independent Power and Renewable Electricity Producers industry. While BEPC is still in line with the averages on profitability rating, there are concerns on its financial health. BEPC is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BEPC has reported negative net income.
In the past year BEPC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: BEPC reported negative net income in multiple years.
Each year in the past 5 years BEPC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.53%, BEPC perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
With an excellent Return On Equity value of 17.60%, BEPC belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
The Return On Invested Capital of BEPC (2.54%) is comparable to the rest of the industry.
BEPC had an Average Return On Invested Capital over the past 3 years of 2.73%. This is in line with the industry average of 4.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 17.6% | ||
| ROIC | 2.54% |
ROA(3y)1.21%
ROA(5y)-0.21%
ROE(3y)13.35%
ROE(5y)-33.35%
ROIC(3y)2.73%
ROIC(5y)2.42%
1.3 Margins
BEPC has a Profit Margin (5.70%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of BEPC has grown nicely.
BEPC has a Operating Margin of 32.83%. This is amongst the best in the industry. BEPC outperforms 84.21% of its industry peers.
In the last couple of years the Operating Margin of BEPC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 57.34%, BEPC is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
In the last couple of years the Gross Margin of BEPC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 32.83% | ||
| PM (TTM) | 5.7% | ||
| GM | 57.34% |
OM growth 3Y11.62%
OM growth 5Y1.44%
PM growth 3Y-41.25%
PM growth 5Y2.18%
GM growth 3Y-4%
GM growth 5Y-3.17%
2. Health
2.1 Basic Checks
BEPC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BEPC remains at a similar level compared to 1 year ago.
BEPC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BEPC has an improved debt to assets ratio.
2.2 Solvency
A Debt/Equity ratio of 10.27 is on the high side and indicates that BEPC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 10.27, BEPC is doing worse than 84.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.27 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.49
WACC5.18%
2.3 Liquidity
BEPC has a Current Ratio of 1.20. This is a normal value and indicates that BEPC is financially healthy and should not expect problems in meeting its short term obligations.
BEPC has a better Current ratio (1.20) than 63.16% of its industry peers.
BEPC has a Quick Ratio of 1.20. This is a normal value and indicates that BEPC is financially healthy and should not expect problems in meeting its short term obligations.
BEPC has a Quick ratio of 1.20. This is in the better half of the industry: BEPC outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 |
3. Growth
3.1 Past
The earnings per share for BEPC have decreased strongly by -178.13% in the last year.
Measured over the past years, BEPC shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.05% on average per year.
BEPC shows a small growth in Revenue. In the last year, the Revenue has grown by 4.41%.
BEPC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.13% yearly.
EPS 1Y (TTM)-178.13%
EPS 3Y-37.71%
EPS 5Y-8.05%
EPS Q2Q%-700%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y7.15%
Revenue growth 5Y5.13%
Sales Q2Q%8.24%
3.2 Future
Based on estimates for the next years, BEPC will show a very strong growth in Earnings Per Share. The EPS will grow by 61.02% on average per year.
Based on estimates for the next years, BEPC will show a small growth in Revenue. The Revenue will grow by 5.66% on average per year.
EPS Next Y25.51%
EPS Next 2Y9.18%
EPS Next 3Y51.35%
EPS Next 5Y61.02%
Revenue Next Year10.45%
Revenue Next 2Y9.74%
Revenue Next 3Y10.25%
Revenue Next 5Y5.66%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BEPC reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year BEPC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BEPC is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.03 |
4.3 Compensation for Growth
BEPC's earnings are expected to grow with 51.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y51.35%
5. Dividend
5.1 Amount
BEPC has a Yearly Dividend Yield of 5.08%, which is a nice return.
Compared to an average industry Dividend Yield of 4.73, BEPC pays a better dividend. On top of this BEPC pays more dividend than 84.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, BEPC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
5.2 History
BEPC has been paying a dividend for over 5 years, so it has already some track record.
BEPC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
DPN/A
EPS Next 2Y9.18%
EPS Next 3Y51.35%
29
-0.36 (-1.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryIndependent Power and Renewable Electricity Producers
Earnings (Last)
Earnings (Next)
Inst Owners61.6%
Inst Owner Change-28.44%
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap5.21B
Analysts82
Price Target34.01 (17.28%)
Short Float %4.26%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.08% |
Yearly Dividend1.39
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)28.08%
Min EPS beat(2)-12.04%
Max EPS beat(2)68.2%
EPS beat(4)2
Avg EPS beat(4)19.18%
Min EPS beat(4)-12.04%
Max EPS beat(4)68.2%
EPS beat(8)3
Avg EPS beat(8)3.74%
EPS beat(12)4
Avg EPS beat(12)-5.41%
EPS beat(16)5
Avg EPS beat(16)-56.16%
Revenue beat(2)1
Avg Revenue beat(2)1.38%
Min Revenue beat(2)-2.85%
Max Revenue beat(2)5.6%
Revenue beat(4)2
Avg Revenue beat(4)-0.04%
Min Revenue beat(4)-3.45%
Max Revenue beat(4)5.6%
Revenue beat(8)4
Avg Revenue beat(8)-0.85%
Revenue beat(12)4
Avg Revenue beat(12)-6.59%
Revenue beat(16)4
Avg Revenue beat(16)-9.44%
PT rev (1m)0.95%
PT rev (3m)4.95%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)19.25%
EPS NY rev (3m)-391.05%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-5.73%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.26 | ||
| P/FCF | N/A | ||
| P/OCF | 9.52 | ||
| P/B | 3.88 | ||
| P/tB | 3.88 | ||
| EV/EBITDA | 7.03 |
EPS(TTM)-0.89
EYN/A
EPS(NY)-0.66
Fwd EYN/A
FCF(TTM)-2.24
FCFYN/A
OCF(TTM)3.04
OCFY10.5%
SpS23.06
BVpS7.46
TBVpS7.46
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.53% | ||
| ROE | 17.6% | ||
| ROCE | 3.32% | ||
| ROIC | 2.54% | ||
| ROICexc | 2.58% | ||
| ROICexgc | 2.58% | ||
| OM | 32.83% | ||
| PM (TTM) | 5.7% | ||
| GM | 57.34% | ||
| FCFM | N/A |
ROA(3y)1.21%
ROA(5y)-0.21%
ROE(3y)13.35%
ROE(5y)-33.35%
ROIC(3y)2.73%
ROIC(5y)2.42%
ROICexc(3y)2.79%
ROICexc(5y)2.48%
ROICexgc(3y)2.84%
ROICexgc(5y)2.54%
ROCE(3y)3.57%
ROCE(5y)3.17%
ROICexcg growth 3Y9.65%
ROICexcg growth 5Y2.34%
ROICexc growth 3Y10.89%
ROICexc growth 5Y3.07%
OM growth 3Y11.62%
OM growth 5Y1.44%
PM growth 3Y-41.25%
PM growth 5Y2.18%
GM growth 3Y-4%
GM growth 5Y-3.17%
F-Score6
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.27 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.25 | ||
| Cap/Depr | 75.2% | ||
| Cap/Sales | 22.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 20.86% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 1.2 | ||
| Altman-Z | N/A |
F-Score6
WACC5.18%
ROIC/WACC0.49
Cap/Depr(3y)74.55%
Cap/Depr(5y)76.02%
Cap/Sales(3y)23.75%
Cap/Sales(5y)24.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-178.13%
EPS 3Y-37.71%
EPS 5Y-8.05%
EPS Q2Q%-700%
EPS Next Y25.51%
EPS Next 2Y9.18%
EPS Next 3Y51.35%
EPS Next 5Y61.02%
Revenue 1Y (TTM)4.41%
Revenue growth 3Y7.15%
Revenue growth 5Y5.13%
Sales Q2Q%8.24%
Revenue Next Year10.45%
Revenue Next 2Y9.74%
Revenue Next 3Y10.25%
Revenue Next 5Y5.66%
EBIT growth 1Y-15.05%
EBIT growth 3Y19.6%
EBIT growth 5Y6.64%
EBIT Next Year158.67%
EBIT Next 3Y60.01%
EBIT Next 5Y22.92%
FCF growth 1Y-169.91%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-65.88%
OCF growth 3Y11.46%
OCF growth 5Y-16.6%